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The Crane Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other
The Crane Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other barbers are paid $1,390 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $800 plus 60 cents per haircut; depreciation on equipment $480; barber supplies 40 cents per haircut; utilities $340; and advertising $200. The price of a haircut is $13. Determine the variable cost per haircut and the total monthly xed costs. (Round variable cost to 2 decimal places, as. 15.25.) Variable cost $ per haircut Total monthly xed costs $ Calculate the break-even point in units and dollars. Break-even Point units Break-even Point $ Determine the operating income, assuming 1,570 haircuts are given in a month. Operating income 55
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